Organizational culture, agile leadership, and employee performance: The moderating role of employee engagement

Abstract

Employee Engagement (EE) has recently become necessary because of its role in organizations that are strategic business partners. Employee engagement is also a mediating factor for other factors that affect Employee Performance (EP). This research examines the influence of Organizational Culture (OCL) and Agile Leadership (AGL) on Employee Performance (EPF) and Employee Engagement (EEN). It explores the mediating role of EEN in these relationships. A quantitative approach is applied in this study to examine how these factors improve employee performance in the organization. The analysis method uses structural equation modeling (SEM) to analyze the relationship between variables. The analysis showed that OCL positively and significantly influenced EPF (coefficient 0.158; P = 0.009) and EEN (coefficient 0.158; P = 0.000). Similarly, AGL contributes positively to EPF (coefficient 0.258; P = 0.000) and EEN (coefficient 0.366; P = 0.000). In addition, EEN acts as a significant mediator in the relationship between OCL and EPF, as well as between AGL and EPF. These findings highlight that employee engagement is essential in improving performance in public organizations. HRM strategies that focus on strengthening an organizational culture that supports trust and fairness and implementing flexible and adaptive leadership are critical to improving organizational performance and effectiveness. Management should use the results of this study to formulate an integrated strategy involving OC, AGL, EPF, and EE. Using EE as a mediator, management can develop policies to improve performance more effectively.